Netflix has formally signed an agreement to acquire Warner Bros. from Warner Bros. Discovery (WBD) in a landmark cash-and-stock deal valuing the studio at an enterprise value of $82.7 billion. The transaction will close once WBD completes the previously announced separation of its Global Networks division-Discovery Global-into a standalone, publicly traded company, now scheduled for Q3 2026.
The acquisition unites two heavyweights of global entertainment, pairing Netflix’s scale, technology and streaming leadership with Warner Bros.’ century-long legacy of film, television and premium storytelling. Under the deal, each WBD shareholder will receive $23.25 in cash and $4.50 in Netflix stock per share, subject to a pricing collar.
Once completed, Netflix will take ownership of Warner Bros.’ film and TV studios, HBO, HBO Max and an expansive catalogue of iconic titles. Classics such as Casablanca, The Wizard of Oz and Citizen Kane, along with modern franchises including Harry Potter, the DC Universe, Game of Thrones and Friends, will sit alongside Netflix originals like Stranger Things, Wednesday, Bridgerton and Squid Game.
Netflix co-CEO Ted Sarandos said the combined library would help “define the next century of storytelling,” while co-CEO Greg Peters noted the company’s ability to expand production, introduce Warner Bros.’ worlds to broader global audiences and deliver long-term shareholder value. The company expects $2–3 billion in annual cost savings by year three and anticipates the deal will become accretive to earnings by year two.
WBD CEO David Zaslav called the merger a joining of “two of the greatest storytelling companies in the world,” ensuring the continued reach of Warner Bros.’ most resonant stories.
Netflix plans to preserve Warner Bros.’ existing operations, maintain theatrical releases and support the creative community with expanded opportunities across well-loved franchises. The boards of both companies have unanimously approved the deal, which now awaits regulatory review, shareholder approval and completion of the Discovery Global separation.
